State Street has launched SSCXX, a Rule 2a-7 government money market fund built specifically to hold reserves for stablecoin issuers. The fund invests in cash and yield-bearing cash equivalents, and is structured to comply with the GENIUS Act — the pending U.S. federal legislation that would set reserve requirements for dollar-pegged stablecoins. This marks one of the first moves by a major traditional financial institution to build infrastructure directly in anticipation of stablecoin regulation becoming law.
When a $4 trillion asset manager builds a product around a bill that hasn't passed yet, it signals that institutional money is treating stablecoin regulation as a matter of when, not if. Stablecoin issuers like Circle and Tether will face mandated reserve requirements under GENIUS — creating a recurring, large-scale demand for exactly this kind of product. This is structurally bullish for compliant stablecoin issuers and for crypto assets broadly, as it deepens the TradFi-to-crypto bridge.
GENIUS Act Senate floor vote — expected in coming weeks. Circle IPO roadshow — ongoing. Next FOMC meeting: Jul 29-30.
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